Labor Market, Manufacturing Index
September 30, 2015
Wednesday – September 30
The labor market continues to improve with robust job hiring in the private sector reported in September. ADP reported that private employers added 200,000 new workers this month, which was in line with expectations. The ADP report is based on data from businesses with almost 24 million workers on their combined payrolls. The improving job market will be a key factor in the Federal Reserve’s decision on whether or not to raise interest at its Federal Open Market Committee meeting at the end of October.
A key regional manufacturing index signaled that activity was contracting this month, falling to a four month low. The Chicago Manufacturing Index fell to 48.7 from a reading of 54.4 in August and below the 52.9 expected. The lower than expected reading put a damper on optimism regarding the U.S. economic outlook. A reading above 50 indicates expansion, below indicates contraction.
A key bill in Washington to temporarily fund the government until December 11, passed through the Senate today and will now head to the House, where it is also expected to pass. The passage of the bill would avert a shutdown of the government and will provide lawmakers some time to negotiate a budget that will fund the government through and up to September 2016.